There’s been a lot of hub-bub in the news about the latest Bitcoin crash, speculating fears amongst the general population that the cryptocurrency has begun an inevitable collapse, bringing an end to the virtual currency.

Those who are bearish see the crash as proof that investing in the currency is a foolish investment, while those who are bullish see this as a minor setback.

But what you won’t usually hear in this polarizing debate is just how this crash compares in context to bitcoin’s history.

A lot of talking heads are focused on this Bitcoin crash only, and never really examine the entire history of bitcoin, which has had a number of drops.

This is a huge mistake because the context puts this crash in perspective, and gives a better idea of Bitcoin’s future.

Today, I want to break away from the mainstream coverage of the latest Bitcoin crash and focus more on the history, experts, and the debate about Bitcoin’s future.

The next major bitcoin crash occurred in Q1 of 2014, once again caused by hackers infiltrating Mt. Gox.

Essentially, two bots were carrying out a bunch of false trades in October — November of 2013, which drove the price of Bitcoin up to a record high of $1,200, which came with a gradual decrease in value.

As the effects of this crash felt more amplified thanks to mainstream attention, so too has the debate about Bitcoin’s future.

Those who were always bearish on Bitcoin and blockchain technology have called bitcoin names like “fraudulent”, “ponzi scheme”, “noxious gas” that will “certainly end bad.” Warren Buffet recently even called Bitcoin rat poiso squared.

A lot of voices that we hear against Bitcoin aren’t always taken seriously by the cryptocurrency community, such as when Jamie Dimon, the CEO of JP Morgan Chase, called bitcoin stupid and “If you’re stupid enough to buy it, you’ll pay the price for it one day.”

He was widely criticized as having a conflict of interest, seeing as his company is one of the largest multinational banks that relies on the dollar.

As a result, people with bearish views on bitcoin tend to be labeled as having a conflict of interest and often ignore any criticism of the technology.

But that isn’t to say that there aren’t legitimate reasons to be bearish on Bitcoin, or everyone who is bearish on Bitcoin has an interest in its downfall.

Peter Schiff, an investor noted for predicting the 2008 mortgage crisis, has been bearish about Bitcoin from the start.

From his perspective, Bitcoin is only popular because it was the first one, and that there is nothing stopping another currency from taking over.

Warren Buffet also had harsh words for Bitcoin in a recent interview with Yahoo news, saying that investing in bitcoins is “not real investing.” He elaborated in detail, saying:

“If you buy something like a farm, an apartment house, or an interest in a business… you can do that on a private basis… And it’s a perfectly satisfactory investment. You look at the investment itself to deliver the return to you. Now, if you buy something like Bitcoin or some cryptocurrency, you don’t really have anything that has produced anything. You’re just hoping the next guy pays more.”

Then there is, of course, the bullish side of the debate.

Those who don’t see a threat to bitcoin, despite the latest bitcoin crash. They point out that their fears of government intervention have largely been unfounded, and the threats made by the South Korean and Chinese government never came to be.

For Thomas Lee, managing partner at Fundstraut, the question isn’t whether Bitcoin will recover or not, but rather how quickly will it recover and how high can it go. Thomas has said that bitcoin and other alt-coins might have already bottomed, which would mean the worst part of the bitcoin crash was over.

A recent report conducted by Fundstraut shows 82% of investors also believe that Bitcoin has bottomed already, and believe a bull market is on the horizon. 53% of those surveyed believe that the price of bitcoin will hover around $10k — $20k this year, while some are more optimistic, with 8% predicting above $30k, and none of them believe that the price of bitcoin will dip below $8k this year.

Other experts such as Jordan Clifford, co-founder of Scalar Capital, have previously pointed out that Bitcoin is designed to be a controlled supply.

“Rare is it that we have a commodity with a truly fixed supply. This means Bitcoin is scarce and will likely be the most scarce currency in existence.”

Others have pointed to the increased predictability in Bitcoin’s price. Analyst such as Datatrek have begun to notice actual correlation between the stock market and bitcoin prices.

In their report, Datatrek said bitcoins acceptance by mainstream investors has caused an uptick in correlation with the stock market and saying “Since investors have only one brain to process risk, they will make similar decisions about cryptocurrencies and stocks when they see price volatility in the latter.”

Increased correlation can be a blessing to investors who are seeking a more predictable asset, and the more we see a correlation between the two, the more investors will be likely to adopt Bitcoin.

But for many, the uncertain future of bitcoin still has them scared. Many believe that a technology as rocky as Bitcoin cannot become a new way of life.

But this sentiment echoes a lot of other concerns investors had about revolutionary technology. For example, Robert Metcalfe, the inventor of Ethernet, predicted in 1995 that the internet would “catastrophically collapse” within one year. Oops.

So, What’s Next?

Needless to say, predictions about technology usually suck.

Maybe Bitcoin isn’t the future, but the latest price crash shouldn’t be an indicator of the future of bitcoin.

When brought in context, and seeing what the experts are saying, it seems like a lot of the fears brought on by the latest Bitcoin crash are unfounded, and that the market is capable of recovering from even worse crashes… as we demonstrated earlier.

Wow, You Read It All…

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